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Red Hat Inc (NYSE:RHT)
Shares Outstanding
187 Mil (As of Feb. 2015)

Shares outstanding are shares that have been authorized, issued, and purchased by investors and are held by them. Red Hat Inc's shares outstanding for the quarter that ended in Feb. 2015 was 187 Mil.

Red Hat Inc's quarterly shares outstanding declined from Nov. 2014 (188 Mil) to Feb. 2015 (187 Mil). It means Red Hat Inc bought back shares from Nov. 2014 to Feb. 2015 .

Red Hat Inc's annual shares outstanding declined from Feb. 2014 (192 Mil) to Feb. 2015 (189 Mil). It means Red Hat Inc bought back shares from Feb. 2014 to Feb. 2015 .


Definition

Shares outstanding are shares that have been authorized, issued, and purchased by investors and are held by them. They have voting rights and represent ownership in the corporation by the person that holds the shares. They should be distinguished from treasury shares, which are shares held by the corporation itself, having no exercisable rights.

Shares outstanding can be calculated as either basic or fully diluted. The fully diluted shares outstanding count includes diluting securities, such as options, warrants or convertibles.


Explanation

A company may buy back shares or issue shares in any fiscal period. If a company buys back shares, we should observe that the total number of shares decline. If the company issues new shares, the number of shares outstanding increases.

If a company buys back shares, we should also observe negative number for Net Issuance of Stock in its cash flow statement. If a company issues shares, we will observe positive number of Net Issuance of Stock.


Be Aware

Usually the presence of treasury shares and a history of buyback are good indicators that company has competitive advantage. But studies have shown that companies usually buy back at wrong time. Buying back shares below its intrinsic value increases value for remaining shareholders. Buying back overvalued shares destroys value for existing shareholders.


Related Terms

Net Issuance of Stock, Buy Back Rate


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Red Hat Inc Annual Data

Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15
Shares Outstanding 208219221211194196196196192189

Red Hat Inc Quarterly Data

Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15
Shares Outstanding 196196193191191192191191188187
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